I.—la,

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in favour of the telephone company, but the judgment has since been reversed? —No; I do not know of that case, as to its reversal of prior judgment. 26. The Chairman.'] What about the multiple-system of exchange ?—That would work very well here where you have an unlimited number of telephones; but I have come to the conclusion that there is no finality in this multiple exchange. The moment you reach the maximum that the cases will allow you have to pull the whole thing down and build it up again. The Hon. Mr. Ward and I have come to the conclusion that, rather than we should have any big exchanges in the town, we will split them up by classifying the subscribers, keeping each branch of trade or profession separate. By this means the telephone would be much more satisfactory in its working, and each business would have undisturbed possession of their wires, and not be subject to the delays at times such as now. 27. Mr. Swan.] It would not have an injurious effect ?—No. The service would bo just as good as it is now, as the road annunciators would always be ready to switch through at a moment's notice. The gain will be very material to subscribers who use the telephone constantly. The exchange here has been laid on my own system—it is my patent—and has been a great saving in time and cost of plant already. 28. The Chairman.] How do you account for the telephone working successfully in America, where there are so many single-trolly tramways running ?—On some lines there the induction will not be so bad. Thomson says the electricity from tramways is destructive to a distance of five miles. Of course the tramways do not as a rule in all cases traverse the same routes that the telephone system would travel on. Our difficulty in Dunedin is this : The main tramway service is right up Princes Street. The tram people said to us : " Shift your lines into another street, and you will get rid of the interference." We would do so, but we cannot. Nearly one-tenth of the whole number of our subscribers are in Princes Street, and the wires are on the house-tops, no poles being used, and, accordingly, all the telephones find earth in that street. We would have to double the whole system. It would not be so bad in Wellington here, for the exchange is out of the city proper. We might get an occasional current. . 29. With the return-wire would there be any improvement when conversing through the telephone ?—There is very little difference, and in my opinion the game is not worth the candle. 30. Mr. Lake.] At Leeds it was said that the effect of the traction current was endurable?— The witnesses, as the New Zealand Times says, who have said this, are all for the men who make the motors and that sort of thing. They can see a great stoppage to their industry if this thing is not allowed to go on. I cannot understand why they cannot adopt some method to overcome this evil. I just thought it out a little, and I cannot see any difficulty in using the double trolley. In America, in some places (where they use single trolly) they have overhead railroads. They run on wooden sleepers. 31. Mr. Earnshaw.] If the electric conductors for the tram-lines were enveloped for the whole length in a tube, with the wires insulated, would it not obviate all difficulty? —No. Pure water is nearly a perfect insulator, that is, a bad conductor; but the moment it comes into contact with any substance, which in this case would be mud in the internal part of the tube, it becomes a conductor. (Taking silver : its conductivity as 100, pure water conducts less than one-millionth part as well.) 32. Mr. Lake.] It is quite certain that sooner or later there must be interference with the telephone system ?—ln the vicinity, Yes. But a tramway running down Jervois Quay, Wellington, for instance, Ido not think would appreciably affect the telephones on the Terrace. With a delicate instrument you might trace it. 33. Are you aware that, in the evidence you were quoting from, a witness who was using Campbell's tram system is asked a question as to the relative cost, and he says infinitely higher than horses, but double that of any other form of electric haulage ?—I thought that question would crop up, and I have come prepared. [See Appendix B.] 34. Have you any evidence regarding horse-power in any system ?—No; but if I have it in any other books I will let you have it. [See Appendix C] 35. As regards the question of the Dunedin tramways, it is one of the most important of the whole lot ?—lf it can be proved that they are going to lessen the cost by electric tramways, it would be. 36. Mr. Earnshaw. .] I suppose the position you take up is this : That while you have prior possession you do not, as a matter of fact, interfere with the ground to any appreciable extent; but when the Tramway Company come into possession along with you, it would interfere with your possession? —It would considerably destroy our plant, in fact. 37. If you had a perfect return system of circuit, would the tram system still affect you?—No; only so far as what Professor Barrett says, that their making use of the earth would destroy our cables in time. We should have to shift them overhead. We cannot load our posts in this town any more —we have reached our limit. Overhead is vastly cheaper. 38. Mr. Lake.] Supposing the tramway system, carrying one set of wires on your posts, and an accident happened to that post —if they were blown down—would there not be some injurious effect, possibly amounting to a fire, by reason of the high pressure?— Yes. It would possibly burn up the Exchange. But I have taken care of that. There is a fuse in every telephone. (The Government have a Board of Control. I am really that Board of Control. Mr. Baron has to go on certain lines. lam not an enemy of the Traction Company nor of the Electric Lighting Company. I wish them to prosper, but Ido not want them to interfere with the Government property.) If one of the telephone wires falls on their wire not much damage would be done. I have kept the Electric Lighting Company's wires below the telephone wires for safety's sake. I do not think we should get any damage from our wires falling. We have had experience here. A wire fell down, and one fuse went at the Exchange and the other at the subscriber's box, otherwise there would have been a fire.